Cryptocurrency: Tesla Got Rid Of A Large Part Of Its Bitcoins
Jul 22,2022 | Chloe Lacour
SYMBOLIC GESTURE The company has just sold 75% of its Bitcoin portfolio for a total amount of 936 million dollars
During the presentation of its accounts for the second quarter of 2022, Tesla revealed that it had sold 75% of its Bitcoin holdings for the amount of 936 million dollars. As a reminder, the American manufacturer of electric and autonomous cars acquired 1.5 billion dollars (1.47 billion euros) in the form of this virtual currency in February 2021. The transaction had contributed to the rise in the price of the currency, explains PresseCitron.
Since November 2021, the price of Bitcoin has, however, collapsed by 66%. This decline resulted in a loss of some 300 million dollars (about 294 million euros) for the American company. Two months before the resale, Tesla's equity valuation in Bitcoin had sunk lower than that of the initial purchase.
Still over $200 million in Bitcoins
Today, Tesla still has around 218 million dollars in Bitcoin or 214 million euros. When it was still fully engaged in this market, the company's equity was able to exceed $3 billion in Bitcoin at its highest value. In May 2021, the manufacturer had already deactivated the possibility of paying for the purchase of electric cars in Bitcoin.
The move did not go unnoticed, as Tesla's adoption of the currency then symbolized an important milestone in the eventual use of cryptocurrency in daily transactions. Beyond the financial reason linked to the fall in the price, the car giant's lack of interest in Bitcoin could constitute a political stance against cryptocurrency, the use, and mining of which contribute to the deterioration of the environment.